Melbourne developer Spacious Group has completed Voyage Altona, one of the closest new apartment developments to Altona Beach.

Off the plan purchasers have started moving into the 49-apartment project on Pier Street, with the remaining move-in-ready one-, two- and three-bedroom apartments starting from just over $500,000.

Display apartments have now been fitted out, allowing prospective buyers to inspect the completed residences by appointment.

[smartcode_project:default project_id=112195 project_image_fid=372638]

The completed apartments feature open-plan living and dining areas which extend onto private balconies and terraces, while full-height glazing maximises natural light throughout the interiors.&nbsp;

Hybrid timber-look flooring, stone benchtops, Miele appliances, porcelain-tiled bathrooms and generous storage feature throughout the building which also features landscaped communal areas, expansive shared terraces, lift access and secure on-grade parking.

Drawing inspiration from its bayside setting, Voyage adopts a restrained palette of warm neutral tones and textured finishes. Many of the apartments take advantage of views across Port Phillip Bay, while the indoor-outdoor living spaces have been designed to make the most of the coastal outlook.

[smartcode_project:default project_id=112195 project_image_fid=3286]

Voyage was developed to address what Spacious Group identified as an undersupply of higher-quality apartment product in Altona, with a focus on owner-occupiers looking to remain within the bayside community.

"Voyage responds to very strong local buyer demand for quality, owner-occupier-focused product," says Barry Plant Projects Director Jarrod Farey, who has handled sales since the project's launch.

"The project delivers an elevated lifestyle proposition, with its design and quality of finish far exceeding anything previously produced in the area, as well as its proximity to Pier Street Village and the beach."

The majority of purchasers have been local downsizers and owner-occupiers looking to stay within the Altona community but who previously had limited opportunities to buy a brand-new apartment.

[smartcode_project_cta:default project_id=112195]

Joel Robinson

Spacious Group completes Voyage Altona in Altona's beachside precinct

Homecorp has secured approval for a $360 million apartment development at Budds Beach, paving the way for one of the Gold Coast's most amenity-rich residential projects to launch later this year.

Gold Coast City Council has approved Lýon Residences, a 32-level tower that will deliver 178 two and three-bedroom apartments across a prominent corner site at 8-10 Acacia Avenue and 25-27 Oak Avenue.

The approval comes as developers continue to invest in premium lifestyle-driven apartment projects on the Gold Coast, where owner occupiers are increasingly prioritising amenity as much as apartment size and location.

<a href="https://www.apartments.com.au/new-apartments/l-on-residences-25-27-oak-avenue-surfers-paradise-qld-4217">Lýon Residences</a> has been designed around a resort-style wellness offering, headlined by a Moroccan-inspired spa precinct featuring treatment rooms, a Nordic sauna and steam room, hot and cold plunge pools, a soaking pool and a residents-only juice bar.

The rooftop will include a heated infinity pool and spa, residents' lounge with private kitchen and bar, gymnasium, yoga and Pilates studio, outdoor entertaining areas and barbecue facilities overlooking the Surfers Paradise skyline.

<img alt="Lyon" data-entity-type="file" data-entity-uuid="2d3e29af-8793-486e-a684-52cef862241f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-07-15%20at%204.32.26%E2%80%AFPM.png?VersionId=ayG2zpLf3SS6Zy8XmKDcQods4kVWb0gm" />

Homecorp Founder and CEO Ron Bakir said Budds Beach provided the ideal location for the company's latest luxury apartment project.

"Budds Beach represents one of the most unique and sought-after pockets of the Gold Coast, and Lýon Residences has been designed to reflect that sense of rarity and refinement," Bakir said.

The project arrives as wellness continues to become a defining feature of new residential developments both in Australia and internationally.

The latest Global Wellness Institute figures show wellness real estate remains the fastest-growing segment of the global wellness economy and is forecast to exceed $1.8 trillion by 2030. Australia continues to rank among the world's 15 largest wellness real estate markets, with developers increasingly integrating health, recreation and community facilities into apartment projects.

Queensland is also experiencing strong population growth, with the Gold Coast continuing to outperform many other Australian cities as demand for new housing remains elevated ahead of the 2032 Olympic and Paralympic Games.

Bakir said the project had been designed to respond to that shift in buyer expectations.

"Strong population growth and sustained demand across the Gold Coast continue to highlight the need for well-designed new housing supply. Lýon Residences responds directly to this demand while setting a new benchmark for residential living," he said.

Each apartment has been designed to maximise views across the coastline, the Nerang River and the Gold Coast hinterland.

Located just minutes from Surfers Paradise beach and the Broadwater, the development also offers easy access to the light rail network, Broadbeach and Burleigh Heads.

Early site works are underway, with construction expected to commence later this year.

Homecorp approved for Budds Beach apartment tower, Lýon Residences

New apartment developments with uninterrupted, north-facing views over Perth's Swan River are exceptionally rare.

Recognising just how limited those opportunities are, <a href="https://www.apartments.com.au/developers/edge-visionary-living">Edge Visionary Living</a>, one of Perth's most respected builder-developers, targeted <a href="https://www.apartments.com.au/developments/applecross-wa-6153">Applecross</a>, assembling an unrepeatable 6,342 sqm riverfront site on the corner of Moreau Mews and Canning Beach Road to create one of Perth's only new north-facing apartment developments directly overlooking the Swan River.

Today, <a href="https://www.apartments.com.au/buildings/riviere-residences-applecross-59-canning-beach-road-applecross-wa-6153">Rivière Residences</a> offers buyers a unique opportunity to choose between completed residences ready to move into now and off-the-plan homes in the final stage, Rivière West.

[smartcode_project:default project_id=28384 project_image_fid=3823]

Across the completed East and Central buildings, residents are already enjoying the development's luxury amenity, while two of the precinct's hospitality venues are now open.

The completed component of the development gives buyers the advantage of experiencing the finished product firsthand, including its uninterrupted river views, while still having the opportunity to secure a residence in the final stage.

"People are wowed by the view and the quality of the apartments,"&nbsp;Edge Visionary Living Sales Executive, Holly McSweeney, says.

"They're looking for the convenience of lock-and-leave living, but they're not looking to downsize on quality."

[smartcode_project:default project_id=28384 project_image_fid=3826]

The rarity of the development hasn't been lost on prospective buyers, McSweeney says.

For McSweeney, it all comes back to a location that is becoming increasingly difficult to replicate.

"Location, location, location," she says. "We are nestled right on the front of the Swan River. You can never get built out, so wherever you are in Rivière Residences, you've got views of the river forever."

The unique waterfront position has resonated particularly strongly with local downsizers. McSweeney says many buyers are long-time Applecross residents looking to transition from large family homes into a luxury apartment without sacrificing space, quality or the lifestyle they've enjoyed for decades.

<iframe allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen="" frameborder="0" height="315" referrerpolicy="strict-origin-when-cross-origin" src="https://www.youtube.com/embed/N_FowNW0wu8?si=vb25XFq1wZ-iufAW" title="YouTube video player" width="560"></iframe>

A major focus for Edge in recent years has been resident amenity. Across its apartment portfolio, from beachfront developments in Scarborough to luxury towers in South Perth, the developer has increasingly invested in the spaces beyond the apartment itself.

The strategy has largely been shaped by downsizer demand. Many buyers are moving from large family homes with swimming pools and established gardens. While they're looking to leave the maintenance behind, they don't want to compromise on lifestyle.

At Rivière, <a href="https://www.apartments.com.au/architects/hillam-architects">Hillam Architects</a> designed the resident facilities as an extension of each apartment. A 25-metre heated swimming pool takes advantage of the north-facing river outlook, complemented by a large gym, sauna and steam rooms, private dining spaces, residents' lounges, a cinema, games room, and dedicated wine and whisky rooms.

[smartcode_project:default project_id=28384 project_image_fid=372542]

The waterfront location has also proved to be a major drawcard. Residents are within walking distance of the Raffles Hotel, South of Perth Yacht Club, the Heathcote Cultural Precinct and the cafés, restaurants and boutiques along Ardross Street.

Beyond the location and amenity, McSweeney says many buyers take confidence from Edge's fully integrated development model.

Having delivered apartments across Perth for decades, Edge now designs, develops and constructs its projects in-house, giving the company greater control over quality, delivery and the finished product.

"What I love is when people walk through their apartment for the first time and say, 'This is better than what we imagined,'" McSweeney says. "We hear that all the time."

Completed apartments in the East and Central buildings are now available to inspect by appointment, while Rivière West, the final stage of the precinct, is expected to be completed in the first quarter of 2027.

[smartcode_project_cta:default project_id=28384]

North-facing Swan River views drive demand at Rivière Residences in Applecross

Nearly 60 per cent of apartments at McNab Group's $220 million The Tannery development in Brisbane's West End have sold ahead of the project's public launch, including a suburb-record $2.57 million sale for a two-bedroom apartment.

The early sales campaign has secured buyers for 50 of the project's 87 apartments, highlighting continued demand for larger owner-occupier apartments that combine generous floorplans with premium lifestyle amenities in one of Brisbane's most tightly held inner-city suburbs.

[smartcode_project:default project_id=143337 project_image_fid=374768]

McNab Group Executive Chairman Michael McNab said selling more than half the project before launch reflected changing buyer expectations.

"Selling more than half the project before public sales open tells us buyers are actively seeking apartments that offer something genuinely different," McNab said.

"Today's buyers are looking beyond four walls. They want homes that genuinely enhance the way they live, with spaces that support health, connection and everyday wellbeing."

[smartcode_project:default project_id=143337 project_image_fid=374767]

A key point of difference for the project is the adaptive reuse of the heritage-listed Dixon's Tannery building, which will become The Retreat, a residents-only wellness precinct rather than being redeveloped into additional apartments.

The Retreat will feature a sauna and steam room, hot and cold plunge pools, a commercial-grade gym, Pilates studio, cinema, library, co-working spaces and private dining room. Rooftop amenities will include a swimming pool, landscaped gardens, outdoor entertaining areas and dog-friendly spaces.

[smartcode_project:default project_id=143337 project_image_fid=374760]

Designed by Cottee Parker Architects with interiors by Tom Mark Henry and landscape architecture by Aspect Studios, The Tannery comprises 87 two, three and four-bedroom apartments across 11 levels overlooking the Brisbane River.

Cottee Parker principal Dee Passenger said preserving the original tannery building had been central to the project's design.

"The easy option would have been to maximise the site's development potential with additional apartments. Instead, McNab has chosen to preserve the original tannery as a shared wellness retreat, ensuring this important piece of Brisbane's history remains at the heart of the community."

Passenger said sustainability also played a key role in the design, with materials from the original industrial site salvaged and repurposed throughout the development.

[smartcode_project:default project_id=143337 project_image_fid=374761]

Motiv CEO Carly Cottam said buyers had responded strongly to the combination of larger apartments, wellness facilities and the West End lifestyle.

"We are seeing more buyers looking for homes in the sky that provide the space and functionality of a traditional home, while benefiting from the convenience and lifestyle that apartment living brings," Cottam said.

She said purchasers included both owner occupiers and investors, with demand coming from local buyers as well as interstate purchasers.

Coinciding with the public launch, McNab also announced a partnership with Queensland Ballet, whose neighbouring Thomas Dixon Centre shares historical ties with the original Dixon family.

Located on a 4,465 sqm site at 439 Montague Road, The Tannery overlooks the Brisbane River and is around 10 minutes from the CBD.

Construction is underway, with completion expected in the second half of 2027.

[smartcode_project_cta:default project_id=143337]

More than half of residences sold before public sales as McNab announces significant partnership with Queensland Ballet

McNab's The Tannery nears 60 per cent sold before public release, sets two-bedroom West End record

Iwan Sunito's vision for a landmark mixed-use precinct in Sydney's Inner West has taken a major step forward, with approval granted for the $1.9 billion Five Dock development first unveiled earlier this year.

The approved scheme by <a href="https://www.apartments.com.au/developers/one-global-capital">One Global Capital</a> will deliver an 80,500 sqm mixed-use precinct comprising 840 apartments, integrated hotel accommodation, commercial and retail space, alongside publicly accessible open space designed to create a new destination for the growing suburb.

"This is a significant milestone for One Global Capital and for the future of housing delivery in Sydney," Sunito said.

"The Housing Delivery Authority was established to identify major housing projects capable of delivering meaningful supply more efficiently, and we are delighted that Spencer Street has been recognised as one of those projects.”

He said the declaration reflected the rapid progress achieved since acquiring control of the site.

"In less than seven months we have progressed from taking control of the site to securing entry into one of the NSW Government's most important planning pathways. It reflects the experience of our team, the strength of our consultant group led by Urbis, and our long-term commitment to delivering transformational projects that contribute to Sydney's future."

When the project was revealed earlier this year, Sunito described the opportunity as one of the strongest development sites he had worked on.

"I probably hadn't appreciated the uniqueness of the site until more recently when putting together the concept plans," Sunito said.

"The proximity to the water, and the golf course opposite, is unlike any other part of Parramatta Road. We have a unique position and view corridors over the water that makes this one of the best sites I've worked on."

The development has evolved since its initial announcement, with the approved plans increasing the residential component from the originally proposed 750 apartments to 840 homes while retaining the project's focus on creating an integrated neighbourhood rather than a standalone residential development.

Read more:&nbsp;<a href="https://www.apartments.com.au/news/nsw/a-city-within-a-city-iwan-sunito-flags-1-5-billion-mixed-use-precinct-in-five-dock">"A city within a city": Iwan Sunito flags $1.5 billion mixed-use precinct in Five Dock</a>

The precinct will combine apartments with hotel accommodation, commercial workplaces, retail offerings and public spaces, creating a mixed-use environment intended to serve both residents and the broader Five Dock community. The proposal also continues the collaboration between One Global Capital and internationally recognised architect <a href="https://www.apartments.com.au/architects/koichi-takada-architects">Koichi Takada</a>, whose previous work with Sunito includes Infinity, Arc and Skye North Sydney.

Takada previously said the design was driven by a philosophy of integrating nature into the built environment.

"The concept for this development is born from our design approach to naturalising architecture," Takada said.

"The public realm benefits from biophilic design that integrates generous landscaping, and the development is optimised for natural daylight, airflow and water views to foster wellbeing, sustainability and spaces that foster community interaction."

Sunito has consistently described the project as a "city within a city", with a strong emphasis on creating a destination that extends beyond housing.

"We want to create a development that's not only to be seen, but to be experienced by the whole local community," he said.

The approval comes as Five Dock continues its transformation ahead of the opening of the Sydney Metro West line, with the new Five Dock station set to significantly improve connections between the Inner West, Parramatta and the Sydney CBD.&nbsp;

The precinct will also benefit from its proximity to the Parramatta Road corridor, nearby waterfront parklands and established retail and dining offerings that have made Five Dock one of Sydney's most tightly held Inner West suburbs.

Iwan Sunito secures approval for $1.9 billion Five Dock mixed-use precinct

Darwin

<html><body>
The 50 percent stamp duty discount announced in the Northern Territory Budget will drive more first home buyers into the local market in Darwin and Palmerston says Glenn Grantham, general manager of Raine and Horne Darwin.
The discount applies to built properties valued up to $450,000 and is capped at $10,000 for more expensive properties until 30 June 2017. 
The first home buyer grant of $26,000 remains.
Grantham said since last week’s Budget, first home buyer enquiry levels had picked up significantly, with housing markets in Palmerston expected to be the major beneficiaries. “This announcement will create the perfect storm for first home buyers who will enjoy the benefits of reduced stamp duty, at a time where we’ve had easing house prices in Darwin and historic low interest rates,” he said.
“The stamp duty breaks are going to help more first timers to jump off the rental treadmill and we expect housing markets under $450,000 in established Palmerston suburbs such as Bakewell, Driver, Rosebery, Farrar, Grey, Malden and Durack to benefit.
“This will get more first home buyers into the market, which is excellent policy-making in light of the low volumes we’ve experienced over the last two years.”
</body></html>

jonathanchancellor-7SQnKwU6yx

NT Budget helping first home buyers

<html><body>
Across Darwin over the three months to December 2015, 13.5 percent of homes resold at a loss compared to 17.3 percent at the end of the previous quarter and 10.2 percent a year ago.
The relatively less developed Litchfield region has recorded the highest proportion of loss-making resales over the quarter at 22.7 percent compared to 12.7 percent in both the Darwin and Palmerston council areas.
<a href="https://www.propertyobserver.com.au/images/2016/03/30/Screen%20Shot%202016-03-30%20at%203.32.52%20PM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2016/03/30/Screen%20Shot%202016-03-30%20at%203.32.52%20PM.png" alt="">
</body></html>

po-LsXgBTHBmX

 Resale loss for residential Darwin property slowing: CoreLogic RP Data Pain & Gain

<html><body><div class="page" title="Page 52">
<div class="section">
<div class="layoutArea">
<div class="column">
Darwin, the capital city of Northern Territory, was approaching the bottom of market for both houses and units in valuation firm Herron Todd White's latest property clock, April 2016, which also focuses on the markets in the fringe suburbs.
To identify the fringe suburban areas of the Darwin residential market, HTW split it up into three key areas. These are inner city, the northern suburbs and the nearby satellite city of Palmerston. Each of these areas has their own fringe suburbs with a common trait shared by all - they generally have the most affordable prices for their sector.
<a href="/images/2016/04/20/Screen%20Shot%202016-04-21%20at%208.12.53%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/20/Screen%20Shot%202016-04-21%20at%208.12.53%20AM.png" alt="">
The inner city fringe suburbs comprise Stuart Park, Ludmilla and The Narrows. Stuart Park occupies a position nearest the Darwin CBD area and has a mix of units and houses whilst Ludmilla and The Narrows are primarily single residential dwellings on large residential allotments. Generally, those who can’t afford the pricier options of the CBD, Larrakeyah, Parap or Fannie Bay look to these suburbs as they are in relatively convenient locations close to the city, with good access to public transport, local schools and other amenities. There has been little to no activity on the sales front for houses in these suburbs, with Stuart Park having only four house sales in the December 2015 quarter. This is reflective of the Darwin market overall which is struggling, with overall vacancy rates up to 8.2 percent (source: REINT).
<a href="/images/2016/04/20/Screen%20Shot%202016-04-20%20at%209.12.03%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/04/20/Screen%20Shot%202016-04-20%20at%209.12.03%20AM.png" alt="">
The volume of unit sales in the inner city fringe suburbs has fared substantially better, however, with sales in Stuart Park increasing by 42% but with a median price drop of 10%  (source: REINT). This can be attributed to new developments being released to the market such as the highly awarded Artique complex and savvy investors jumping on a bargain. These figures can be significantly misleading however. Due to the withdrawal of the first home buyer’s grant for existing dwellings, new developments have become extremely attractive while existing units have experienced substantial softening.
A semi-modern two-bedroom unit in Stuart Park recently sold for as low as $385,000. The downturn in the market has opened up the potential for good buying in the area, with the added convenience of being close to the CBD.
A secondary fringe area is the ex-government housing dominated part of the northern suburbs, particularly Malak and Karama. Considered the most inferior part of this area, Malak and Karama are primarily made up of single residential dwellings with a small number of units. These suburbs have performed fairly similarly to other parts of the northern suburbs, with median house prices down approximately 10% on the quarter for both (source: REINT). Good buying can definitely be had, with entry level ground level three-bedroom houses being sold in the mid $400,000 range. In the upper range, elevated properties (considered superior due to the ease of being built under) can be purchased for as low as $520,000.
Vacancy rates are up by 3.4% to 9.2% (source: REINT) year on year, which again is a reflection of the slowing down of the Darwin residential market as a whole. Rents for three-bedroom dwellings in this area have dropped to a median amount of $540 per week which equates to a 16.9% drop per annum. Long term, these suburbs do make for good buying for those who can’t afford the more expensive locations closer to the Nightcliff foreshore and Casuarina Shopping Centre. In the medium term, Malak and Karama are expected to follow the rest of the greater Darwin market, having experienced a large amount of softening since 2014.
Recent sales evidence has shown the market is stabilising however, with vendors setting reasonable price points to meet the new market conditions.
This leaves us with Palmerston, a satellite city approximately 20 kilometres south of the Darwin CBD. The removal of the first home buyer’s grant for existing properties has had a large impact across the board. Fringe suburbs include Moulden, Rosebery, Woodroffe, Driver and Bakewell. Sales volumes for dwellings are significantly down, with last quarter each posting drops of at least 50% on annual figures. Cheap buys in Moulden mean that the mid to high $300,000 range can grab you a neat and tidy three-bedroom property. 
Unit stock is also feeling the pinch, with drops in median prices ranging from 2.2% in Rosebery to 18% in Bakewell (source: REINT). These figures reflect a market that has seen a significant downturn, with little evidence of an increase in values any time soon. In Bakewell, a two-bedroom semi-modern unit can be bought for $285,000 and in Rosebery a modern two-bedroom unit can be picked up for $350,000.
The problem is all older stock is competing against brand new dwellings in Durack Heights or Bellamack with first home buyer concessions to boot. There are bargains out there obviously with prices down and vendors needing to sell, however it has become a waiting game for purchasers as with an excess of supply on the market they are spoilt for choice. There has been recent market evidence that 2016 won’t be as bad as 2015, but there is no doubt the polarisation of new versus old stock will remain until the Northern Territory Government addresses changes to the first home buyer’s scheme. A substantial election promise tackling this issue could be on the cards, with real estate professionals across the board agreeing on a necessary change and an upcoming general election scheduled for August 2016.
 
</div>
</div>
</div>
</div></body></html>

prateek24-ezbwHMbNAk

Fringes reflect Darwin's struggle, units fare better than houses: HTW 

<html><body>
The Darwin housing market has been one of the standout performers in previous years, however home values are down 3.6 percent over the past twelve months and have fallen by a cumulative 3.7 percent over the past five years, according to the latest NAB housing insights report.
The softening in growth conditions is likely related to the wind down in major infrastructure spending and slower population growth, both of which have previously been strong drivers of housing demand in the past.
The regional area of Darwin, although relatively sparsely populated outside of Alice Springs, has seen values fall by a similar 2.5 percent over the past twelve months. 
While home values are down 3.6 percent over the past year, rents are falling at a faster pace which is pulling rental yields lower in the northernmost capital city. Despite the recent yield compression, gross rental yields remain amongst the highest of any capital city in Darwin.
<a href="/images/2016/03/11/Screen%20Shot%202016-03-11%20at%203.35.10%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/03/11/Screen%20Shot%202016-03-11%20at%203.35.10%20PM.png" alt="">
</body></html>

Mining investment winds-down further, putting added pressure on the NT housing market: NAB

<html><body><div class="page" title="Page 17">
<div class="layoutArea">
<div class="column">
Across Darwin over the three months to September 2015, 16.9 percent of homes resold at a loss compared to 17.2 percent at the end of the previous quarter and 9.4 percent a year ago, according to the most recent CoreLogic RP Data Pain &amp; Gain report. 
The relatively less developed Litchfield region has recorded no loss-making resales over the quarter compared to 15.9 percent in Palmerston and 19.5 percent in Darwin. 
<a href="/images/2016/01/29/Screen%20Shot%202016-01-29%20at%2011.39.48%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/01/29/Screen%20Shot%202016-01-29%20at%2011.39.48%20AM.png" alt="">
</div>
</div>
</div></body></html>

Darwin's Litchfield survives loss-making quarterly resales: CoreLogic RP Data Pain & Gain

<html><body>
 
CoreLogic RP Data analysis shows rents across the combined capitals rose by 0.2% in January 2016.
 
Across individual capital cities, rents rose over the month in Sydney, Melbourne, Adelaide, Hobart and Canberra while they fell elsewhere. 
 
Dwelling rental rates across the combined capital cities are recorded at $443 per week and they are unchanged over the past year.
 
CoreLogic RP Data have been tracking annual rental changes since 1996 and over that time rental growth conditions have never been weaker.
 
At the same time last year rental rates had increased by 1.7% highlighting that the slowdown in rental conditions has been sharp over the year.
 
"As highlighted in previous reports, heightened construction activity, slowing population growth, higher than normal investment activity and stagnant wage growth are key contributors to unchanged rental rates over the past year," Cameron Kusher at CoreLogic RP Data said.
 
"More rental stock at a time when demand is easing due to slowing population growth and little wage growth for renters has resulted in flat rental conditions over the past year.
 
"For renters there are a lot more accommodation options in the market while landlords are having to respond to a more competitive environment which, in many cases means keeping rents steady to keep the tenants. 
 
Looking across the individual capital cities, over the past year, rents have increased in Sydney (+1.4%), Melbourne (+2.1%), Hobart (+0.1%) and Canberra (+1.8%).
 
Rental rates have fallen over the past year in Brisbane (-0.7%), Adelaide (-0.4%), Perth (-8.6%) and Darwin (-13.4%).
 
Across every capital city except Canberra the rate of annual rental growth or decline is currently lower than it was a year ago indicating that the weaker rental market conditions are prevalent across most capital cities.
 
<a href="/images/2016/02/08/Screen%20Shot%202016-02-08%20at%208.42.21%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/02/08/Screen%20Shot%202016-02-08%20at%208.42.21%20AM.png" alt=""> 
Combined capital city house rents were recorded at $487 per week in January 2016 and unit rents were $465 per week. Over the past month, house rents rose by 0.1% while unit rents rose 0.2% and over the past three months house rents rose 0.1% compared to a 0.5% rise in unit rents. 
The data indicates that demand for unit product, while still quite weak, is holding up better than rental demand for houses, despite the increase in new apartment supply. Over the past year, house rents are -0.3% lower while unit rents have increased by 1.5%. It is important to note that a much higher proportion of total unit stock is rented compared to housing stock. 
For as long as CoreLogic RP Data have been tracking rental growth figures, house rents have never before fallen on an annual basis while annual unit rental growth is occurring at its slowest pace since late 2003. 
The additional accommodation being provided by the current building boom along with recent record high levels of investment purchasing is adding substantial new dwelling supply to the market at a time when the rate of population growth is slowing from quarter to quarter.
Furthermore, wages are increasing at their slowest pace on record which indicates that many renters simply don’t have the means to pay more for their accommodation. Additionally, it is arguable that landlords havent had much incentive to push yields higher due to the low cost of debt and strong capital gains. All of these factors combined are continuing to ease rental market pressures and resulting in the weakest rental market on record. 
We expect that rental market conditions are likely to remain weak, potentially softening further over the coming months. In fact there is a possibility that rental rates may start to fall on an annual basis. While this is great news for renters, investors are facing the prospect of weaker capital gains coupled with falling rents which would push down their yields.
The large pipeline of residential construction activity and recent high levels of investment demand means that renters are likely to continue to have plenty of choice when looking to renew their lease.
<a href="/images/2016/02/08/Screen%20Shot%202016-02-08%20at%2012.39.05%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/02/08/Screen%20Shot%202016-02-08%20at%2012.39.05%20PM.png" alt="">
<a href="/images/2016/02/08/Screen%20Shot%202016-02-08%20at%2012.41.15%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/02/08/Screen%20Shot%202016-02-08%20at%2012.41.15%20PM.png" alt="" width="810" height="331">
Capital city rents are increasing at their slowest annual pace on record and with value rises outpacing rental growth, rental yields are also sitting close to record low levels currently. At a combined capital city level, gross rental yields were recorded at 3.4% for houses in January 2016 and at 4.3% for units. Combined capital city house and unit rental yields are currently both at record lows.
A year ago, gross rental yields were recorded at 3.6% for houses and 4.5% for units across the combined capitals. With a sluggish rental market in which interest rates may fall even further, we may see a further compression of yields over the coming months however, this will be somewhat dependent on growth in home values as well as the direction of rental rates. This means that capital growth, which is slowing, is likely to remain a much more important factor for property investors.
<a href="/images/2016/02/08/Screen%20Shot%202016-02-08%20at%2012.43.28%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/02/08/Screen%20Shot%202016-02-08%20at%2012.43.28%20PM.png" alt="" width="823" height="688">
 
Rental yields are lowest for houses in Melbourne (2.9%) and highest in Darwin (5.3%). Unit yields are lowest in Melbourne at 4.0% and highest in Hobart at 5.3%. Sydney and Canberra house yields are currently at record low levels while Sydney and Melbourne unit yields are also at historic low levels. 
Across every capital city, house rental yields are lower now than they were at the same time last year. This is reflective of lower rental growth relative to house value growth. 
The unit market shows similar trends to the detached housing market. Yields are higher than a year ago in Adelaide and Canberra while elsewhere yields have softened over the past year. The generally softer yields point to market conditions in which unit value growth has generally outpaced unit rental growth.
<a href="/images/2016/02/08/Screen%20Shot%202016-02-08%20at%2012.45.39%20PM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/02/08/Screen%20Shot%202016-02-08%20at%2012.45.39%20PM.png" alt="">
</body></html>

Darwin sees sharp slowdown in rental conditions: CoreLogic RP Data January rent review

<html><body>
Darwin was the clear underperformer across all capital cities in Australia, according to the latest Office Market Report by the Property Council of Australia, with the vacancy rate nearly doubling over last year.
This was the result of an economic convergence of increasing supply and lower demand. The city reported the highest supply rate increase in Australia at the same time as it was experiencing the lowest demand growth, says the PCA.
The vacancy rate rose to 20.7 per cent from 10.9 per cent last year.
“Darwin city has recorded the highest supply rate increase and the lowest demand growth in the nation,” said PCA Northern Territory director Ruth Palmer said.
“A significant amount of supply has been brought onto the market over the last 24 months. This has occurred despite demand weakening during the same period.”
The report shows that negative demand was concentrated in the lower grades. 
“Darwin’s vacancy rate has jumped 9.8 per cent and this was largely due to -18,727sqm of net absorption and 16,286sqm of supply additions. 
All grades of space recorded vacancies of about 15 per cent. 
“In order for us to see a long-term improvement in the office market, we need further investment in the City Centre, in particular the implementation of the Darwin City Centre Master Plan projects,” added Palmer. 
“Furthermore, it's critical that we receive a commitment from the Northern Territory Government to increase employment levels in the City Centre. 
“Not only do we need to increase employment levels and investment in the city, we need to encourage further residential development to allow for additional population growth in our City Centre. 
<a href="/images/2016/02/04/Screen%20Shot%202016-02-04%20at%2010.41.43%20AM.png" target="_blank">Click to enlarge</a>
<img src="/images/2016/02/04/Screen%20Shot%202016-02-04%20at%2010.41.43%20AM.png" alt="">
</body></html>

Darwin office vacancy rate doubles: PCA

<html><body><div class="page" title="Page 19">
<div class="section">
<div class="layoutArea">
<div class="column">
Darwin’s industrial property market has been relatively steady throughout 2015, according to the Herron Todd White latest report.
There has been much speculation locally about the imminent Inpex cliff project.
The construction phase of this project is expected to be completed in 2017 and will therefore no longer compete for all types of resources in Darwin, including property.
"Our expectation in the industrial property sector at least is that demand for industrial accommodation should continue at current levels.
"The commencement of the production phase for Inpex will see demand shift from construction to maintenance which will still require significant accommodation."
Peak periods will also be experienced at shutdowns and if future trains of either Inpex or the Conoco Philips plant are commissioned.
Local property is as well placed as it has ever been to supply the necessary land for the required developments.
There is a choice of a number of industrial estates and we note that work is commencing on the new Truck Central site at the corner of Tiger Brennan Drive and Tivendale Road.
This will include blocks of land available for development associated with the transport industry.
While there were few landmark sales in 2015, the industrial property market in Darwin moved along steadily through the year.
"It would be fair to say that it fared better than most other market segments in Darwin and still retains a positive outlook," the report noted. 
 
</div>
</div>
</div>
</div></body></html>

jrobinson-rf4aSBido9

Inpex underpins Darwin industrial property: Herron Todd White

<html><body><div class="page" title="Page 49">
<div class="section">
<div class="layoutArea">
<div class="column">
Herron Todd White's recent in month report highlighted Darwin was still attaining the highest rental yields of any capital city in Australia, sitting at 5.5% for both houses and units.
Despite having the highest rental yields, HTW noted CoreLogic RP Data's Home Value Index shows that Darwin has recorded the most substantial decline in values with a fall of 3.2% over the three month period to August 2015.
"Local agents have seen lower levels of investor transaction in the past 12 months with owner occupiers forming a greater proportion of buyers in the current market," according to Herron Todd White's November review .
It noted the level of investment lending has shown signs of cooling in recent months, with lending finance data released by the Australian Bureau of Statistics showing a 35.6% decline in the value of new lending to investors in the Northern Territory between May and August 2015.
The report explains that there are a number of developments under construction and near completion, including Horizons on Harvey, Mauna Loa Apartments, Jepun on Smith Street Mall, Catalyst, 29 Daly Street Darwin, Tech 1 and a number of boutique buildings on inner streets of Stuart Park and Larrakeyah, with a total of 500 apartments.
"Darwin CBD is currently experiencing a high level of apartment construction driven by strong demand from first home buyers due to the FHOG being limited to new properties.
"Among these developments, 2-bedroom sales above the $600,000 mark have seen fewer transactions compared to 1-bedroom, studio and 2-bedroom apartments in the price range of mid $400,000 to $550,000 which particularly appeal to investors and are offering a gross yield in the range of 5% to 6%."
The report goes on to add that although rents have come back in the past six to eight months, the relatively higher rental yield compared to other state capitals keeps properties in Darwin attractive to interstate investors, especially new apartments, due to the benefits of better rental rates, tax savings, less maintenance issues and depreciation benefits.
"In previous years, up to 70% of off the plan apartments were sold to investors.
"In contrast, the current demand for off the plan properties has shifted towards a more even market of investors and owner occupiers.
"In the past, several developments in the inner Darwin CBD were offering attractive incentives of up to 8% guaranteed rental returns.
"These developments had been well received by both local and interstate investors.
It suggested that today, most of the current off the plan apartments no longer provide such incentives apart from the Northern Territory Government’s Real Housing for Growth head-leasing initiative developments.
"Under the plan, 2,000 new homes will be constructed in the Northern Territory in the next four years and these properties will be leased to eligible key service industry workers at 30% subsidised rent.
"At present, properties available under the scheme are The Eclipse development in Coconut Grove in Darwin’s north, Farrar Village development in the satellite city of Palmerston and a number of developments in Alice Springs."
These developments have been well received by investors due to the attractive return of guaranteed rental income stream for a ten year period, according to the November review.
"Looking at detached housing specifically, Defence Housing Australia properties in the northern suburbs of Muirhead, Bellamack, Johnston and Zuccoli in Palmerston are still attracting both local and interstate investors offering yields ranging from 5% to 6% with a ratchet clause in place which ensures rent cannot fall below the contract rental price.
"At present, Darwin is experiencing higher than normal rental vacancy at 3.3% as a result of rising home ownership as tenants have been able to get a foot onto the property ladder.
"Looking to Palmerston, owner occupiers formed a greater proportion of buyers in the new subdivision of Durack Heights and Zuccoli as FHOG are available to purchase house and land packages.
The report also suggests that established stocks of both units and detached dwellings in Palmerston, Darwin CBD and the northern suburbs have been the hardest hit segments in the current market.
"Local agents have advised that these stocks are experiencing extended selling periods and a lack of interest as investors and first home buyers are purchasing new properties. 
"The continued decline in house prices for established homes will affect investor borrowers who are looking to borrow money using their equity to purchase investment properties plus the need to stump up a bigger deposit.
"The current trend of softening in Darwin is likely to persist over the coming years. The cumulative effect of APRA’s tighter lending conditions and more expensive mortgage rates will affect investors’ confidence and the long term sustainability of Darwin."
</div>
</div>
</div>
</div></body></html>

Darwin top of the capitals in rental yield: Herron Todd White

<html><body><div class="page" title="Page 51">
<div class="section">
<div class="layoutArea">
<div class="column">
A casual $1.5 million can get you into a four bedroom prestige waterfront home in Darwin, according to Herron Todd White's October Month in Review.
Herron Todd White said although Darwin's top-end market is not 'firing on all cylinders', the local prestige market has not suffered to the extent of other market segments.
"The prestige market is victim to a case of circumstances with investor confidence down as income growth has decreased since the start of 2015," the report noted.
"There are only a limited number of purchasers who operate in this market with properties being listed for long periods of time.
"There are limited markets in Australia that still offer the same opportunity to purchase prime waterfront real estate at this price point."
</div>
</div>
</div>
</div></body></html>

Darwin

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Darwin

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News